Is there any provision to exempt federal government contracts?
No, contractors cannot exempt themselves or their subcontractors by inserting some provision in contracts in an attempt to do so. But recall that the contracts and subcontracts that are not covered by the rule include:
prime contracts under the Simplified Acquisition Threshold, which is currently set at $100,000.
subcontracts below $10,000.
contracts and subcontracts for work performed exclusively outside the territorial United States.
See Part 471.3 for exemptions that the contracting department or agency can request from the Director of OLMS.